American Airlines Fires Chief Commercial Officer Vasu Raja, A 20-Year Employee

An American Airlines 777-300ER at DFW
American Airlines announced the firing of Vasu Raja, a long-time senior executive who most recently held the post of chief commercial officer. Prior to that, Raja was the carrier’s chief revenue officer.
The move came a little over two weeks after the carrier denied reports that Raja was on the firing line.
Raja was reportedly dismissed by American CEO Robert Isom in the wake of a critical report from Bain & Co. about Raja’s controversial new marketing program that has alienated longtime corporate customers, according to two persons familiar with the matter.
Isom’s move was accompanied by a cut in the airline’s profit outlook that sent the airline’s shares tumbling 14% on Wednesday, its biggest drop in nearly four years.
Raja’s new concept, dubbed “modern retailing,” attempted to push customers away from corporate travel agencies in favor of using American’s website, apps, and other tools. Raja had trimmed the carrier’s sales department in introducing the concept.
The Bain report, which the airline had commissioned, suggested that corporate travel advisors had concerns over the new strategy and Bain implied that it had contributed to the airline’s downturn in corporate sales revenue, one person familiar with the matter said.
At press time, Raja could not be reached for comment.
Raja had joined American in 2004 after studying management consultancy at New American Schools in Washington, D.C. Prior to that, he was a teacher in the Baltimore public school system for three years.
(Photo: Accura Media Group)